Rebuilding Your Credit After an Illinois Divorce

 Posted on July 31, 2018 in Divorce

Although a divorce does not have to affect your credit, it can. The possibility of reduced income, moving expenses, and actions or inactions of your spouse are all possible causes, but once the divorce is finalized, there is only one real solution: rebuilding your credit. Learn more about how to do this in the following sections. More importantly, learn how a seasoned divorce lawyer could reduce the chances that you will experience adverse credit issues during your divorce. 

Make a Plan - Jointly and Independently

Perhaps one of the best ways to mitigate the risks of credit issues during and after your Illinois divorce is to sit down with your spouse, take an inventory of your finances and debts, and develop a plan. Discuss your options, such as: 

• Delaying the divorce until some of your debt has been paid off;
• Selling off some of your joint assets to pay down your debts;
• Determining which debts you and your spouse will pay; and
• Considering whether bankruptcy may be your best course of action. 

Parties are also encouraged to develop their own, independent plan. Determine if there are independently-owned accounts that can be paid off quickly, decide how much money you will have to pay debt once you and your spouse are separated, and create a post-divorce budget. 

Close Joint Accounts and Avoid New Debts Until Your Financial Status Improves

When you have to start your life over, it can be easy to rely on credit. Unfortunately, you can further impede your financial well-being by adding more debt to your plate. Consider other options instead. Could you take up a side job? Do you have pre-marital assets that you can sell to fund your move? Is selling the house and then splitting the money an option? Do you have vacation time with your employer that you can cash out? These are all viable alternatives to debt reliance while trying to rebuild your life after a divorce. Remember to also close all joint debt to keep your spouse from racking up new debt. 

Start Positive Independent Credit Accounts 

Once you are feeling more confident about your financial status, you can start to rebuild your credit through independent credit accounts. You may have to go with secured forms of debt, which require you to put down a security deposit, but if you continue to make timely payments, your credit standing will improve. Over time, you may be eligible for better, unsecured forms of credit. Just be sure to avoid taking out more credit than you need and can afford to pay back. 

How Our Wheaton Divorce Lawyers Can Help Reduce the Risk of Credit Issues

While you are ultimately in control of your credit, the seasoned Wheaton divorce lawyers at Davi Law Group, LLC can help you to reduce the risk of credit issues during your Illinois divorce. Dedicated and experienced, we can give you a clear picture of your financial status, assist you in developing a plan, and help you negotiate a settlement that can hopefully satisfy all involved parties. Call 630-580-6373 and schedule your personalized consultation to get started. 

Source:

https://www.fool.com/credit-cards/2018/07/12/how-to-build-your-credit-after-divorce.aspx